Information Note
28 Apr 2006
Information Note
| Bombay
Stock Exchange Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai |
28-Apr-2006
|
Subject: SEBI gives stay order on its Ex Parte Ad Interim Order against Indiabulls Securities Ltd
Dear Sir,
This is to inform you that pursuant to the ex parte interim order dated 27-4-06 in the matter of Initial Public Offerings against Indiabulls Securities Ltd, the company had today appeared in front of Mr G Anantharaman, the Whole Time Member of SEBI to make oral and written submissions regarding receipt of 13,939 shares of TCS after its IPO from 559 different accounts. The 559 account holders who transferred the 13,939 TCS shares to Indiabulls Securities Ltd, transferred the shares in the CLIENT MARGIN ACCOUNT of Indiabulls Securities Ltd for their trading purposes towards meeting their margin requirements as per the stock exchange rules and regulations. Indiabulls Securities Ltd accepted these shares in its client margin account in its capacity as a broker and for the limited purpose of facilitating the client transactions. As per the rules, a broker can not trade on behalf of a client without receiving margin from the client either in the form of cash or shares. On sale of the TCS shares by the 559 clients, the proceeds of the sales were transferred by Indiabulls Securities Ltd to the same individual client accounts who had transferred these shares to Indiabulls client margin account for meeting margin requirements.
Indiabulls Securities Ltd or any of its group companies had absolutely no role in either the IPO application of these 559 clients or any economic interest or any other interest whatsoever in the sale proceeds arising out of the sale of 13,939 shares or any financing of any of the IPO applications of the 559 clients. These 559 clients are based out of 81 different cities in India.
Pursuant to the oral and written submissions made by the company, Mr G Anantharaman, the Whole Time Member of SEBI has granted a stay on his order so far as it relates to Indiabulls Securities Ltd until further directions.
Yours
faithfully,
For Indiabulls Financial Services Limited
Amit Jain
Company Secretary
